3028 Air malta

Introduction

• What it is: This MCC covers passenger air transportation services provided by Air Malta.
• Risk level: Medium — Generally stable, but susceptible to fluctuations in travel demand.
• Acceptance difficulty: Medium — Acceptance varies based on travel industry risk and merchant history.
• Typical business models: airlines; travel agencies; online booking platforms; charter flight services.
• For merchants: Expect moderate MDR; some may require reserves depending on ticket sales; approvals can be swift for established airlines.
• What PSPs expect: Standard business registration; proof of flight operations; clear cancellation and refund policies on booking platforms.

Payment Insights & Benchmarks

Merchants in this MCC should plan for higher payment friction compared to standard e-commerce. Acceptance often depends on method mix, fraud controls, and PSP risk appetite.

Payment methods

Cards: widely accepted, but often subject to approval rate variability based on traveler behavior and region.

• E-wallets: gaining popularity for both domestic and international transactions, especially for digital booking.
• Bank transfers: relevant for higher-value transactions but can lead to longer settlement times.
• Vouchers and gift cards: useful for encouraging customer loyalty and reducing chargeback risks.
• Travel-specific payment solutions: tailored for the industry but may limit merchant flexibility.

Authentication & security

Strong customer authentication (SCA) protocols are commonly applied, particularly for cross-border transactions.

• These measures help curb fraud but may inadvertently increase cart abandonment rates.
• Merchants should monitor transaction patterns to identify potential fraudulent activities early.

Benchmarks (indicative, not guaranteed)

MDR: typically higher than standard e-commerce due to added complexities in travel bookings.

• Rolling reserves: often required by PSPs to mitigate risks, generally in double digits.
• Settlement cycles: usually longer, potentially exceeding 7 days, depending on the payment method.
• Chargeback ratios: can be significant, particularly in travel-related disputes.
• Card approval rates: generally lower due to higher fraud scrutiny; alternative methods may show higher success.

Key metrics to monitor

Authorization rates segmented by payment method and customer profile.

• Chargeback reasons categorized by travel disruption vs. policy issues.
• Abandonment rates during the checkout process, especially related to authentication steps.
• Trends in customer inquiries related to payments, indicating potential acceptance issues.

Risk & Compliance

Merchants under this MCC are subject to heightened scrutiny due to the unique risks associated with travel-related services and ticket sales. PSPs and acquirers typically implement rigorous measures to combat potential fraud and chargeback issues while ensuring compliance with AML/KYC regulations.

Chargebacks & fraud

Frequent occurrence of friendly fraud, where customers dispute legitimate transactions by claiming non-receipt of services.

• Risks of no-show fraud, where customers book flights with no intention of using them and subsequently dispute charges.
• Mitigation tools include chargeback alerts, transaction verification, and comprehensive cancellation policies.

AML/KYC expectations

Strong customer identity verification (IDV) is essential, including checks for high-risk individuals on sanctions lists.

• Source-of-funds verification is necessary, particularly for high-ticket purchases or frequent travelers.
• Manual review triggers include large bookings, use of multiple payment methods for a single transaction, or bookings made through VPNs.

Operational red flags

Unclear ownership of travel agencies or ticket resellers that may obscure genuine business practices.

• High volumes of transactions from flagged geographical regions or unusually high customer churn.
• Lack of clear refunds, exchanges, and cancellation policies, which may lead to customer disputes and chargebacks.
• Inadequate tracking of customer interaction or booking history could raise suspicions regarding legitimacy.

Onboarding Checklist

Merchants under this MCC should prepare a complete onboarding package before approaching PSPs or acquirers. A well-structured submission improves approval chances and shortens review times.

Legal & corporate documents

company registration and incorporation documents

• disclosure of beneficial owners (UBO) and corporate structure
• valid licenses for the relevant business activities
• policies: Terms of Service, Privacy, AML/KYC, Refund Policy

Financials & risk management

recent financial statements and cashflow forecasts

• liquidity or reserve model for payouts
• description of antifraud setup and monitoring tools

Product & marketing

demo access or screenshots of the live platform

• marketing plan and traffic source overview (affiliates, SEO, PPC)
• geographic targeting information
• KYC flow details, including IDV providers and thresholds

Technical integration & security

payment architecture overview with supported methods/providers

• description of SCA/3DS flows, retry logic, and tokenization
• PCI DSS compliance status and data storage policy

Operations

customer support coverage (languages, 24/7 if available)

• SLA for dispute handling and chargeback response
• deposit, ticket, and payout limits; self-exclusion mechanisms
• internal process for chargeback investigation and documentation

Regulation & Licensing

Licensing and certification are essential for merchants in the air transport sector, as they ensure compliance with aviation regulations and standards. Recognition of these licenses is subject to the merchant’s jurisdiction and the markets they operate in.

Operator licenses

Civil Aviation Authority (CAA) — essential for airlines operating within the UK, ensuring safety and compliance with aviation regulations.

• European Union Aviation Safety Agency (EASA) — recognized across EU member states, applicable to airlines operating in Europe.
• Federal Aviation Administration (FAA) — required for airlines operating within the United States, focusing on safety and operational standards.
• National transportation authorities in various countries, which may have specific licensing requirements tailored to local regulations.

Geo-restrictions

Airlines may face restrictions in countries where they do not hold necessary aviation licenses, leading to operational limitations.

• Some regions may impose flight bans or quotas on foreign airlines, impacting market access.
• International air transport agreements can limit the number of flights or routes available to foreign carriers in specific jurisdictions.

Certifications & audits

IATA Operational Safety Audit (IOSA) for operational safety and compliance verification.

• Compliance with International Civil Aviation Organization (ICAO) standards and practices.
• Safety management system audits and reviews to ensure adherence to safety protocols.
• Environmental audits related to emissions and sustainability reporting for air transport operations.

Official Definitions & Network Comparisons

This section shows how major card networks define this MCC and highlights practical differences that affect merchant onboarding.

Explanation:

While the definitions across networks are relatively similar, phrases like "airline services" versus "sales of airline tickets" can affect how transactions are categorized. Each network may have specific onboarding requirements related to licensing and accreditation, especially if the merchant operates in a regulated region. Rejections can occur due to lack of proper documentation, geographical risk factors, or compliance with airline and travel regulations.

Alternative MCC Codes

Merchants often confuse this MCC with other categories. The table below shows which codes are related, why they are confused, and what risks misclassification brings.

Rule of thumb for merchants:

Ensure your classification directly matches your primary business activities. If you are engaging in selling tickets or operating flights, use the appropriate MCC (3028 or otherwise) to avoid compliance issues and potential disruptions to your business.

Best Practices for Merchants

Merchants under the MCC code 3028 must navigate a highly dynamic aviation sector, requiring diligent management of payment processes and customer relations. By following the practices below, businesses can enhance operational efficiency, ensure compliance, and mitigate risks associated with transactions.

Classification & transparency

always use the correct MCC; misclassification can lead to compliance issues and account scrutiny

• clearly display policies regarding cancellations, refunds, and travel changes on your website
• maintain transparency in pricing, including any additional fees or taxes

Fraud & chargeback reduction

implement 3DS or step-up authentication for online bookings, especially for high-ticket flights

• ensure billing descriptors are clear and recognizable to customers to minimize confusion
• log transaction events and customer interactions to support dispute investigations effectively

Payment acceptance optimization

support multiple payment methods (credit/debit cards, travel vouchers, PayPal, etc.) to cater to diverse customer preferences

• optimize routing strategies based on geographic locations and historical performance by payment provider
• consider using separate merchant IDs (MIDs) for different products, such as international and domestic flights, to better manage risk

Operational discipline

track KPIs like booking conversion rates, chargeback ratios, and transaction decline rates to analyze performance

• conduct regular compliance audits and customer service reviews to ensure adherence to policies
• establish a dedicated team for handling disputes with defined escalation processes to resolve issues swiftly

Payouts & liquidity

maintain adequate liquidity to accommodate rolling reserves imposed by payment processors

• automate anti-money laundering (AML) checks for ticket sales, particularly for high-value or high-volume transactions
• monitor cash flow closely to manage payout cycles effectively and anticipate any funding gaps

Business Scope & Examples

This MCC covers businesses engaged in the operation of airlines and air transport services. Merchants classified under this category typically provide ticketing and travel services for passenger air travel and are involved in the transportation of goods by air. The scope specifically focuses on companies that generate revenue from flying passengers or freight.

Models

passenger airlines (domestic and international travel)

• charter airlines (on-demand flight services)
• cargo airlines (transportation of goods)
• air travel agencies (ticket sales and travel packages)
• aviation service providers (ground services, maintenance)

Borderline cases

Private jet services — may include charter services but could be classified differently if focused on non-commercial use.

• Travel booking platforms — while they sell airline tickets, if they don’t operate flights themselves, they might fall under a different MCC.

Signals for correct classification

business primarily generates revenue from ticket sales for air transportation

• direct involvement in the operation of flights, including passenger or cargo transport
• services provided directly relate to air travel, such as flight bookings or charter flights